The Australian Energy Regulator has granted a ring-fencing waiver to network operator Ausgrid pertaining to its work in the Hunter Central Coast Renewable Energy Zone in New South Wales.
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Ausgrid applied for a waiver because its network services on the Hunter Central Coast REZ will fall outside of the definition of ‘direct control services’.
The regulator granted the waiver from clauses 4.2.1, 4.2.2, and 4.2.3 of the Ring-fencing guideline (Electricity distribution). This allows Ausgrid to provide network services in the REZ alongside its existing regulated network services without separating staff, offices, and branding.
As a condition, Ausgrid must notify the AER of any legislative change (which may be earlier than the change coming into effect) that would affect the scope of the waiver.
The waiver was required because Ausgrid’s services will be regulated under the Electricity Infrastructure Investment Act instead of the National Electricity Law and National Electricity Rules.
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Therefore, despite Ausgrid being a monopoly provider of the REZ network services, the services will be deemed to be ‘contestable electricity services’ for the purposes of the guideline.
